Munich, 22 March 2018 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist in the packaging industry, continued to grow at an above-average rate in 2017. On the basis of the preliminary figures for the business development published today, sales revenues increased by 8.5 percent to EUR 102.4 million (2016: EUR 94.3 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) at EUR 12.4 million were 6.5 percent higher than in the previous year (2016: EUR 11.6 million). This includes one-off costs incurred in the fourth quarter especially in connection with the first-time preparation of the consolidated financial statements in accordance with IFRS.

Compared to the outlook for the 2017 financial year, preliminary sales revenues thus reached the upper end of the published range of EUR 98.0 to 103.0 million, while the preliminary EBITDA in the middle of the published range of EUR 11.5 to 13.0 million EUR was. "In the past fiscal year, we were able to further optimize numerous processes and leverage Group-wide synergies, above all in the area of ​​production," emphasizes Christoph Petri, Spokesman of the Management Board of Ringmetall Group. "Regrettably, there have been some macroeconomic trends that have counteracted these effects and resulted in our margins not having increased to the extent that would have been possible from a purely operational point of view."

These effects include, on the one hand, the still high steel prices, which in 2017 could not be passed on in full extent to the customer via the long-term agreed floating-price clauses. On the other hand, the weakening of the US Dollar and the Turkish Lira against the Euro had the effect of reducing overall margins. "All in all, we currently see that these negative trends are not further intensifying respectively are already partially weakening again," says Petri.

The key preliminary business development figures for 2017 are as follows:

IFRS (EUR thousands)

2017

2016

Deviation

Sales revenues

102.4

94.3

8.5 %

Gross profit

45.3

41.3

9.7 %

Gross margin

44.3 %

43.8 %

EBITDA

12.4

11.6

6.5 %

EBITDA margin

12.1 %

12.3 %

EBIT

10.4

9.7

7.3 %

EBIT margin

10.2 %

10.3 %

Sales in the core business unit Industrial Packaging increased by 11.7 percent to EUR 88.3 million (2016: EUR 79.0 million). The division's EBITDA increased by 2.6 percent to EUR 12.2 million (2016: EUR 11.9 million). The main sales driver was the above-average growth in the chemical industry, especially in Germany. The Group subsidiary Self Industries (USA) also performed particularly well, significantly boosting sales and earnings on a US Dollar basis. However, due to the aforementioned negative development of the US Dollar against the Euro, translation effects prevented sufficient recognition of this positive development. The Management Board continues to assess the current situation in Turkey with considerable restraint. In the fourth quarter of 2017, the company has therefore divested itself of real estate in the region, to instead rent a cost-effective production facility. The further development of the region is continued to be closely monitored by the Executive Board.

The Industrial Handling business unit continues to develop very successfully after a rewarding strategic realignment. Sales in the division, which were expected to decline in the short term after adjusting the product range, were only slightly below the previous year's level at EUR 14.1 million (2016: EUR 15.3 million). At EUR 1.2 million, EBITDA was around twice as high as in the previous year (2016: EUR 0.6 million). "With our self-developed products, we have achieved a point load on the market and we therefore see a surge in demand," explains Konstantin Winterstein, CEO of Ringmetall AG. "We are now planning to continue investing specifically in this spirit and to consistently expand our market position."

On the acquisition side, Ringmetall is in advanced talks with several companies and continues to view the acquisition market as highly attractive despite increased valuation levels. "In the M&A sector, we continue to pursue a very conservative approach," emphasizes Christoph Petri. "Word has got around in the market that our group of companies as a buyer is a qualitatively very attractive option for mid-sized companies up for sale. In addition to the financial aspect, the vendor also counts on the survival of his life's work and the preservation of jobs. Here we can score extra points."

For the full year 2018, the Executive Board of the Ringmetall Group expects the growth trend to continue. On a purely organic basis, therefore, Sales revenues are expected to grow to 107.0 to 112.0 million euros. The EBITDA margin is expected to rise slightly year on year. This figure already includes special expenses expected in connection with the change of the stock market segment targeted for 2018 to the Regulated Market (General Standard) of Deutsche Börse and the related issue of the prospectus.

Further information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.

Ringmetall is an internationally leading specialist in the packaging industry. The Industrial Packaging business segment offers highly secure gasket and locking systems for the chemical, the petrochemical and the pharmaceutical industry as well as the food industry. The Industrial Handling business segment develops application-optimized vehicle accessory parts for the handling and transport of packaging units. Besides its headquarters in Munich, Ringmetall has worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands, as well as in China and the USA. On a global scale, Ringmetall generates revenues of more than EUR 100 million per year.

22.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.